The last week has, we wrote ‘attention as 5880 may also be a resistance that can dam and then we would have a double top in daily would remind us first on the support area of 5720 then that of 5680/70 “and finally the parity after 5920 test set out again down this weekend to return and finish under 1.58 at the close of Friday night in 5752.
The Greek crisis has weighed on the pound sterling and the dollar took the opportunity to win the prize back in 1.58. However and again, all eyes are fixed on Athens and the Greek parliament. A favorable vote Sunday night could allow parity to resume its march forward and try to return to 5920 may be 1.60. Nevertheless, and as the Eurodollar, we will be careful not to let ourselves be taken by a trap on the highest buyer of 5880/5920.
Indeed, we finished last week by the appearance of an ETE in 30 mins and 1hr and a neckline of 5720 (old resistance now support). Therefore, it will be valid and parity goes as a target of 5720 for 5580/20. Either we return to the highs and the worst we continue with 5920 as a consolidation of a high range 5720/5920. After, it will be to see if the market has enough strength to get out of the ranks and go on 1.60/1.61.
In case we validerions ETE, follow the daily MACD and we could start a bearish retracement of around 200 pips to go initially to 5550/5520. However attention is always dangerous for our finances to be stubborn and therefore do not set our analysis only on the SUMMER. But, on the news that will make the trend.
Also, it is best to play the known points namely 5720 (stoploss 5690) as support for 5820/5880 and 5920. Sell high with stoploss of 5940/50 for the bottom. Sell under 5720 to 5580/20 with stoploss above 5740. Finally buy above 5930 for 5980 and 6020.
Our tip for the week; We buy over 5720 and it sells below
We buy 5820/30 to 5920/80 and 1.60
We sell 5880/5820 for 5720/5680
We buy 5680/5720 for 5880/5920
We sell 5670 to 5580/20
Statistics that can influence the currency pair
Feb. 14 German ZEW
UK Inflation February 15
February 17 US Inflation
- Technical analysis and forex forecasts GBP-USD for the week of February 20 to 24
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- Technical analysis and forex forecasts GBP-USD for the week of Feb 27 to 2
- Technical analysis and forex forecasts GBP-USD for the week of March 12 to 16
- Technical analysis and forex forecasts GBP-USD for the week of March 19 to 23